Bakai Bank is targeting a commercial launch in Hong Kong early next year to leverage the city’s offshore Chinese yuan liquidity, positioning itself to facilitate yuan-denominated cross-border trade as the currency becomes the primary settlement medium between China and Central Asia.
Two years ago, trade between Central Asia and China was predominantly in US dollars, but there has been a very clear pivot to the yuan, said Andreas Meletiou, chief executive of Bakai Bank Hong Kong.
He noted that being in Hong Kong places the bank in an advantageous position for those transactions because of the deep pool of local offshore yuan liquidity.
Bridging a massive financial gap
“In 2025, trade between China and Central Asia exceeded US$100 billion (HK$780 billion), and we expect that figure to rise to US$120 billion by the end of this year,” Meletiou said.
While China has firmly cemented its position as Central Asia’s top trading partner, Meletiou pointed out that financial intermediation and specialized banking services between the two rapidly growing regions remain relatively immature.
Bakai Bank’s Hong Kong branch will initially focus on corporate cash management, trade finance, and treasury services. It will also provide foreign exchange hedging tools to protect Central Asian currencies against the yuan.
First Central Asian lender in APAC
The Hong Kong expansion marks a historic milestone for Bakai Bank, making it the first financial institution from Kyrgyzstan and the broader Central Asian region to establish banking operations in the Asia-Pacific.
Headquartered in Kyrgyzstan and established in 1998, Bakai Bank secured its restricted banking license from the Hong Kong Monetary Authority on October 5. Under the restricted license, the wholesale lender will focus exclusively on corporate, institutional, and cross-border trade clients, without offering retail savings accounts.
Meletiou described setting up in Hong Kong as a "very conscious choice" after evaluating global financial hubs, citing the SAR’s robust regulatory environment, legal ecosystem, deep talent pool, and its strategic identity as a super-connector to mainland China.
The local branch’s team is predominantly composed of Hong Kong bankers with extensive global and regional experience.
Scalable growth and strategic partnerships
To achieve broader reach and operational scale, Bakai Bank intends to operate through strategic collaborations and partnerships with traditional banks, multilateral organizations, and fintech firms.
Launching with a team of under 40 staff, the bank expects to grow to around 50 employees over the next two to three years based on business demand.
Looking ahead, Meletiou emphasized that the bank’s immediate priority is establishing a solid operational trajectory in Hong Kong, though future long-term plans may include pursuing additional licenses to broaden its product suite.
